Inter plant profit determination on Consolidation

Dear Gurus/Experts,
I am facing a scenario in Consolidation in an Indian Implementation project. The Client is a manufacturing company and has two plants. The production of 1st plant is mostly captive consumed by 2nd plant and also sold outside. Now they are having some local ERP system. In this system, they are recording the stock transfer as Sales. So when goods are issued from 1st plant to second plant, it is done by raising sales invoice with sales tax. However, they do not allow me to see the consolidation entries.
I have thought of treating each plant as profit center and so as show the sales/turnover at plant level as per their requirement. But during consolidation, the unrealized profit will be knocked off. The client wants to show the inter-plant sales also (as the scenario I have mentioned) on the plant level as well as company code level. I am unable to do this as this company is registered with the Registrar of Companies as a single company and have single PAN No. I also cannot go for creating two company codes as this will be out of scope.
Gurus, please help me how I can map this scenario in SAP.
Thanks and Regards,
Amit

Hi Amit,
What I undestand from your post is only one company code with multiple plants.
1.So here you can create a plant as a customer and do the stock transfer.
2.At company code level in p&l you can show purchases and also show sale for the transaction you are mentioning. I am doubtful that you cannot show in this way as it is not following the accounting standard for revenue recognition .
3. As the company is single entitiy the step two is going to eliminate profit in stock transfer & which a basic accounting principle and legal requirement for revenue recognition accounting standard.
Warm Regards

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Edited by: kiran kumar on Feb 7, 2011 4:54 PM

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Dear all,
Thank you for the answers so far. However, I apologize if I've caused some misinterpretation.
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>
AMIT AGGARWAL wrote:
> I have my sequence as follows
>
> Pl03 Operation - Pl02 oper - subcontract 1 - subcontract 2 - PL01
>
> After PL01 I am geting FG. I am trying to use SPK 40 and SPK 30
> Pl guide me abt this
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http://help.sap.com/erp2005_ehp_04/helpdata/EN/f4/7d2d4d44af11d182b40000e829fbfe/frameset.htm
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Edited by: Pascal on Jul 31, 2009 2:10 PM

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Hello Friends,
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Jitendra Chauhan.

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Inter plant profit determination on Consolidation

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